Scary/Frightening:
* Nightmarish: This is the most direct and common adjective.
* Terrifying
* Horrifying
* Chilling
* Dreadful
Disturbing/Troubling:
* Unsettling
* Eerie
* Distressing
* Haunting
Unpleasant/Uncomfortable:
* Oppressive
* Grotesque
* Surreal
* Bizarre
Other options:
* Nightmarishly realistic: Emphasizes the realistic nature of the nightmare.
* Recurring nightmare: Emphasizes that the nightmare is frequent.
* Living nightmare: Emphasizes the feeling of being trapped in a nightmare.
The best adjective will depend on the specific context you are using it in.